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<br />< r, ~.: I <br />.!..'-:""J <br /> <br />..I <br /> <br />,- <br /> <br />(Refer to' the memorandum in the appendix prepared by Blank's advisor, <br /> <br />Professor Robert Young, CSU economist.) In economic terms, the Bureau <br /> <br />is assuming that the marginal value of irrigation water is constant; <br /> <br />the work of ,Blank indicates that the marginal value is decreasing. <br /> <br /> $ BUREAU ASSU~WTIONS $ BLANK'S RESULTS <br />value of ( value of production ---------- <br />production \ from 2nd acre-foot { <br />from 2nd \ <br />acre-foot I <br /> I <br />value of I I <br />production value of production <br />from 1st from 1st acre-foot I <br /> I <br />acre-foot I <br /> I <br />dryland { dryland value of { I <br />value of production' I <br />production <br /> 0 lAP 2M' 0 lAF 2AF <br /> amount of irrigation water amount of irrigation water <br /> applied to one acre of land applied to one acre of land <br /> <br /> <br />By using a dryland farm as a representative farm, the Bureau has nullified <br /> <br />any possibility of meaningfully analyzing the direct economic benefits of <br /> <br />project water. In order to correct, this deficiency, it would seem that a <br /> <br />detailed farm budget needs to be developed for a partially-irrigated repre- <br /> <br />sentative farm. Such an analysis would require an update of historic water <br /> <br />utilization, farm headgate and river headgate requirements, as found on page <br /> <br />31 of reference 1. <br /> <br />-5- <br />